Correlation Between SPDR Gold and HANetf ICAV
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and HANetf ICAV at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SPDR Gold and HANetf ICAV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Gold Shares and HANetf ICAV , you can compare the effects of market volatilities on SPDR Gold and HANetf ICAV and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SPDR Gold with a short position of HANetf ICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and HANetf ICAV.
Diversification Opportunities for SPDR Gold and HANetf ICAV
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and HANetf is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV and SPDR Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SPDR Gold Shares are associated (or correlated) with HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of SPDR Gold i.e., SPDR Gold and HANetf ICAV go up and down completely randomly.
Pair Corralation between SPDR Gold and HANetf ICAV
Assuming the 90 days trading horizon SPDR Gold Shares is expected to generate 0.56 times more return on investment than HANetf ICAV. However, SPDR Gold Shares is 1.8 times less risky than HANetf ICAV. It trades about 0.11 of its potential returns per unit of risk. HANetf ICAV is currently generating about 0.03 per unit of risk. If you would invest 16,046 in SPDR Gold Shares on November 5, 2024 and sell it today you would earn a total of 8,766 from holding SPDR Gold Shares or generate 54.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
SPDR Gold Shares vs. HANetf ICAV
Performance |
| Timeline |
| SPDR Gold Shares |
| HANetf ICAV |
SPDR Gold and HANetf ICAV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and HANetf ICAV
The main advantage of trading using opposite SPDR Gold and HANetf ICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, HANetf ICAV can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HANetf ICAV will offset losses from the drop in HANetf ICAV's long position.| SPDR Gold vs. SPDR Barclays 10 | SPDR Gold vs. SPDR ICE BofA | SPDR Gold vs. SPDR SP Utilities | SPDR Gold vs. SPDR ICE BofA |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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